U.S. Mortgage Delinquency Rates Remain Near All-Time Lows: CoreLogic

In March 2024, the national residential mortgage delinquency rate stood at 2.8% for the third consecutive month, up slightly from March 2023, according to the latest report. CoreLogic Loan Performance Report.

The data provider examined all stages of delinquencies to obtain a comprehensive view of the mortgage market and loan performance health.

Early delinquencies (mortgages 30 to 59 days past due) accounted for 1.5% of all mortgages in February, up from 1.1% in March 2023. Adverse delinquencies (loans 60 to 59 days past due 89 days) stood at 0.4%, up from 0.3% in March 2023. And serious delinquencies (loans past due 90 days or more and those in foreclosure) were at 0.9%, compared to 1.1% in March 2023.

The foreclosure process affected only 0.3% of mortgages, a rate that has remained unchanged for 25 consecutive months and indicates that mortgage performance remains strong despite the slight increase in delinquencies on an annual basis.

Additionally, a U.S. unemployment rate that remained below 4% in April should help most borrowers pay their bills on time in the months ahead.

“The U.S. delinquency rate increased in March compared to a year earlier, driven by an increase in early-stage delinquencies,” CoreLogic senior economist Molly Boesel said in a statement. “Additionally, the initial delinquency rate remained stable from February to March of this year, when it typically falls between these months as many borrowers receive income tax refunds in March.

“Although monthly variations in early delinquency rates can be volatile, this break from the seasonal trend comes at a time when household budgets are being strained by persistently high inflation. »

Forty-eight states saw year-over-year increases in their overall delinquency rates in March. The state with the largest increase was Louisiana, up 0.7 percentage points to a rate of 5.5%.

As of March, six U.S. metropolitan areas saw year-over-year increases in their serious crime rates, while 39 metropolitan areas saw no change.

The metropolis that saw the largest increase in serious delinquencies compared to March 2023 was Kahului-Wailuku-Lahaina, Hawaii, up 1.5 percentage points. The island of Maui was the scene of devastating wildfires in August 2023 and the Federal Housing Administration (FHA) recently extended its moratorium on foreclosures until August 4, 2024.

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